Flood of stock will lead to falling prices: SQM By Adam Smith | 13/04/2011 2:00:00 AM | 0 comments
Unsold stock in Melbourne is skyrocketing, a property research firm has stated. SQM Research has indicated that stock on the market in Melbourne has risen 60.9% since April 2010. The company has predicted record drops in Melbourne house proces as a result. According to the company, stock around the nation's capital cities is on the rise, with every capital city recording year-on-year growth in unsold stock. SQM managing director Louis Christopher said the result indicates a weakening housing market. "This week's stock level results reveal a market that continues to deteriorate in most capital cities and metropolitan regions. It fits with the weak housing finance approval numbers released this week by the Australian Bureau of Statistics and flies in the face of what are increasingly questionable auction clearance rate statistics," Christopher remarked. Christopher said SQM is predicting an overall decline in house prices for 2011 as more stock sits unsold. "We now believe the Australian Bureau of Statistics is likely to report house prices falling by greater than 5% for this calendar year, with the falls lead by South East Queensland, Perth and Darwin," he said. Related stories: Housing downturn imminent: SQM SQM reveals growing stock glut
